The essence of Facebook Libra is a Blockchain, not Crypto!

Although there are concerns about not being mature enough for the blockchain to bring a new era of payment, this technology is increasingly being explored by global central banks. On the other hand, Blockchain technology is the core of Facebook’s Libra digital currency, according to an executive on this project.

Since the release of the official Libra report in June 2019, the unstable stablecoin has held fast to the architecture of the blockchain, explained the vice chairman of the Libra Association, Dante Disparte.

Blockchain Opens Payment Network Interoperability

In an interview on April 28 with the Central Bank’s financial publications, Disparte outlined a number of structural benefits provided by the implementation of the blockchain. As part of the advantages supported by the blockchain, the executive outlined the potential of technology to drive payment technology interoperability. She says:

“We are still committed to blockchain architecture as a general ledger technology distributed in this project. Without this, the project will not achieve too much efficiency, for example a low-cost structure and interoperability that are being designed. “

Dante Disparte

According to Disparte, this interoperability problem is one of the biggest challenges faced by the global payment network. “Because technology doesn’t talk to each other, it usually develops for years before the units can finally make payments to each other.”

Dante Disparte

He also added, “without Blockchain as the essence of Libra and the technology that exists among the members of the blockchain association that will run node validation, it will be more difficult to have a digital wallet environment that does not have the Lock-In effect, where users are shackled into one provider or another. “

Dante Disparte

“The Cryptocurrency Aspect Is Not the Main Key of this Innovation,”

Dante Disparte

As reported in the interview, Disparte also alluded to a common narrative that said cryptocurrency was not the most important thing in innovation like this blockchain technology.

He explained, “The cryptocurrency aspect is not the main key of this innovation. A real breakthrough made by Libra is to create a protocol level for value transfer. This is a major contribution of Libra. Without blockchain as the essence, it is very difficult to achieve the openness that we are trying to develop at the wallet level and the user level. “

Dante Disparte

According to Disparte, the Libra Association hopes to launch Libra soon in the fourth quartile of 2020. At that time, the project is expected to be able to sort out major issues including regulations, organization, and readiness to move from testnet to the main area.Libra Seeks More in Launching this Project

The interview with Disparte was conducted after Libra in a series of new efforts to move forward with this project. On April 16, the Libra Association submitted a payment system license from the Swiss Financial Market Supervisory Authority and also made many changes to its official report.

Besides still being involved in regulatory issues, Libra continues to develop its members and teams. On April 20 alone, the Libra Association added a non-profit organization called Heifer International. Previously, the Association also joined the British payment start-up company, Checkout.com. Facebook’s digital wallet, Calibra, is also in the plan to open 50 new positions for its workforce in Ireland.